This is an additional problem in addition to the fall in the volume of trade due to a lower consumer demand and credit problems caused by the financial crisis. In this respect prof. Jeremy j.. Siegel. He noted, that protectionism is rather a threat, not a fact, although it’s a growing threat that must be taken very seriously.
In fact, so far the protectionist sentiment is much weaker than what would be expected in a principle, and that is something that I like, said Professor everyone has in mind the great depression and its huge tariff levels on the other hand, the director-general Pascal Lamy invoked the infamous Smoot-Hawley Act of 1930, which increased tariffs on more than 20,000 products imported by the United States. This Act sparked a trade war which, according to many economists, worsened the depression. Either with tariffs or other measures more sophisticated, now run the risk of rushing us to the slippery terrain of measures and countermeasures. Adds Universia Wharthon, than in the United States, in the Chamber of Deputies, Democrats drafted tough provisions to purchase American products in his economic stimulus bill, though the terms were softened in the Senate at the request of the Obama administration. The final law obliges to use iron, steel and American manufactured goods in projects financed by the stimulus plan. Allowed exceptions in the public interest or if the use of American materials increases the costs of the project by 25% or more.
And most importantly, approved Finally, unlike the version of the Chamber of Deputies, stipulates that United States must follow fulfilling its international trade agreements. This calmed many groups defending free trade, such as the Chamber of Commerce American, which had pressed hard against the measures proposed by the camera. Further, indicates that many experts believe that additional stimulus will be needed and worried that growing protectionist sentiment, even while the Obama administration has taken positions strongly advocates free trade. Meanwhile, certain protectionist impulses are observed in the rest of the world. France and Italy, as well as United States, have approved measures to help its automotive manufacturers. In the United Kingdom, some measures to protect employment are considered potentially protectionist, and many countries have criticised China for keeping its currency artificially low to promote their exports eventually, many experts are concerned the return of protectionism, but many point out that at the moment there are other factors that do far more damage to international trade. According to predictions of the World Bank, trade will fall this year for the first time since World War II, and many ports because they are experiencing double-digit drops. Finally he concludes the article by Universia Wharton who in the opinion of Prof. Meyer, the threat of protectionism is just one of the ingredients of the combination of challenges facing the global economy.